Minister of Economy Gevorg Papoyan announced on his Facebook page yesterday that by the decision of the Anti-Corruption Court and the mediation of the General Prosecutor’s Office, “Araratcement” was handed over to the administration of the Republic of Armenia, represented by the Ministry of Economy.
He informed that the manager of the company will be appointed in July, and called on the employees to conscientiously fulfill their duties, warning that otherwise grounds for dismissal, administrative or even criminal liability may arise.
A paradoxical situation has been created. the minister of economy of the country is, in fact, proudly presenting a process that is much more reminiscent of a gulp carried out by the use of repressive mechanisms than an economic policy implemented within the framework of a legal state.
The case of “Araratcement” is not unique.
In the last one year, this is already the second major case, after the HEP, when the state takes actual control over a large private property. This is a dangerous trend that cannot but affect Armenia’s investment reputation.
Such encroachments on property rights are a serious blow to the investment environment. No investor can feel protected in a country where the fate of property can be determined by political developments or the whims of the first person in power. Moreover, such processes will most likely become the subject of international legal disputes in arbitrations and reports of authoritative organizations, causing additional damage to the country’s economic reputation.
It is almost beyond doubt that Gagik Tsarukyan will recover his property rights sooner or later. In that case, the financial consequences of this political adventure of Nikol Pashinyan’s government will become a heavy burden for the state budget. The citizens of Armenia will pay that price, not the authors of these decisions.
The following statement of the minister deserves special attention. “Until then, I urge all the employees of the company to do their work conscientiously and responsibly, so that in the future there are no grounds for dismissal or administrative and criminal liability in accordance with the law.”
It is difficult to consider this wording as an ordinary work admonition. It is more likely that the government is aware of the possible dissatisfaction with its decision also in the “Araratcement” collective and tries to prevent them by creating an atmosphere of warnings, blackmail and pressure.
In a state governed by the rule of law, the government should be the guarantor of property rights, not the instrument of its restriction. Otherwise, not only the fate of one enterprise or one owner, but also Armenia’s economic future, legal predictability and investors’ trust are at risk.
Political scientist Suren Surenyants
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